Sometimes, even when save your salary, planning financially and taking care of each of your expenses, unforeseen events can happen. And the worst: situations that you are not even to blame. In this case, we are talking about a undue collection and what to do in case one of those shows up at your door.
The big problem with the issue involves the difficulty that the consumer faces to prove that he is not responsible for that expense. And this involves major obstacles with the creditor who made the collection.
Therefore, in this post we will analyze this situation from all possible perspectives so that you can finish this reading knowing what is undue collection and what to do to get around it and resolve it quickly.
In the following topics we will talk about the following subjects:
- What is improper charging ?;
- Undue collection: what to do ?;
- What does the Consumer Protection Code say about an undue charge ?;
- What to do if the company does not recognize the undue charge ?;
- How to have more financial control?
What is improper charging?
Do you want an alarming data, but one that shows how common an action of undue collection is? In 2019, more than 2.5 million complaints were filed reporting this practice, here in Brazil.
And what would that be?
In general, it is a mistake made by a company when charging for something that has either already been paid or that payment was not expected.
An example: you paid a bill and, the following week, the same charge was made. Or, even, you’ve been charged for a service or product that you’ve never consumed.
It also happens, cases of undue charges due to fraud or scams.
If you are not aware of this charge, or if you prefer to neglect it once the payment has already been made, it may happen that your name be negative and appear on credit protection sites, such as SPC and Serasa.
This is even a debilitating and very serious problem in the life of the UK residents. With a negative name, you cannot apply for credit or even products from the financial market, such as credit cards or loans and financing.
In a country with tens of millions of people in debt, it is essential to keep the name clean. If you are interested in understanding a little more about the country's economic situation, in this sense, save it for later reading our article that explores the degree of indebtedness of UK citizens in 2020!
Undue collection: what to do?
Before we go deeper and think about actions brought by moral damages for an undue charge, it is worth understanding the step by step to resolve the situation in the fastest and most harmonious way possible.
For this, it is important to know what to do when an improper charge is made on your behalf. See our step by step, below!
Identify the source of the charge
If there is a supplementary charge for something you have already paid, look for vouchers or even check your statement (bank or invoice) credit card). This makes it much easier to know if the charge is due or not, and even if you have settled the pending.
Always keep payment receipts on file
It is worth reinforcing what was said in the previous topic: make it a habit to keep proof of payments. Through them, you have proven evidence that a certain pending issue has been settled, for example, in addition to being a good tool for maintaining financial discipline with your purchases.
As much as we have access to purchase histories digitally, on the internet, don't ignore paper vouchers, when issued. They will be of great help to anyone who is faced with an undue charge and wants to know what to do.
So, if you need – and probably will need – evidence to ensure that it is an undue charge on your behalf, do the following: keep all types of proof.
We have mentioned this before, but remember that these documents are wide and varied. Some examples:
- physical or digital proof of payment;
- payment confirmation emails.
With that in hand, we can move on to the next step.
Contact the company that is charging you the amount
The next step regarding an undue charge and what to do is to contact the company that is demanding your payment directly.
Importantly, still report that you want to see your name removed from credit protection agencies, but always making use of good education. Solving the problem in an agile and friendly way is good for all parties.
For this, it is worth keeping an eye on the previous steps: if you have any document proving that the charge is undue, report this to whoever meets you. This can minimize the severity of the situation as much as possible and shorten the time interval until it is resolved.
What does the Consumer Protection Code say about an undue charge?
Once the undue collection is proven, the company has full responsibility to resolve the situation. Not to mention providing assistance to the injured consumer. Only, if this does not happen, there is a process for undue collection and moral damages that is the right of the people, as stated in the Article 42 of the Consumer Protection Code (CDC).
It states that the consumer has the right to repeat the wrongdoing – which is the receipt of the double amount paid – as a kind of penalty for the mistake made by the company and the possible inconveniences caused to the injured person.
What to do if the company does not recognize the undue charge?
If the dealings do not follow friendly and with a satisfactory outcome in which the company is firm in not recognizing the debt paid by you (or which was not made by you), it is possible to sue a company for undue collection.
In this case, there is the right to compensation for pain and suffering due to undue collection.
However, it is important to look for PROCOM or even get in touch with specialized companies that, today, can even do the process entirely online for you.
However, it is worth knowing the reasons why the consumer is entitled to file a lawsuit against companies that carried out the improper collection, which are as follows:
- when the payment of a debt was made normally, but it is not included in the company's systemThe. In this case, the consumer may have paid twice for the same amount – perhaps, because of the pressure to know that his name would be negative if he did not make the payment charged;
- when an undue charge was not paid. In such cases, the judicial means may be the way to end discussions with the company and stop it from charging. The indemnity can occur, in these situations, if the company insists on the collection even after the judicial decision;
- when the problem of improper charging did not even reach the consumer and he already has his name negative. If this happened on behalf of someone else, and it was a succession of mistakes by the company, it is possible to request the opening of a lawsuit and even receive compensation for moral damages.
Did you understand, then, what to do with the improper charge in order to prove that you have nothing to do with the amount charged?
How to have more financial control?
You should now know what to do with an improper charge. However, it is worth reinforcing the importance of knowing what happens to your finances, throughout the month, to prevent this type of corporate action from harming your financial life and, especially, causing constant headaches.
To help, we have also put together some tips that are essential for those who need quick guidance on financial control. Thus, you will never be caught off guard by undue charges and financial backlogs that can wipe out your budget and planning. Check it out below:
- identify all fixed and variable expenses;
- write down your expenses in a spreadsheet and keep it in line with your family income;
- be detailed, in the spreadsheet, and explore what each expense served;
- dedicate a percentage (minimal) of your income to eventual financial emergencies;
- analyze and diagnose priorities to define what will be spent – and where;
- set goals and identify which expenses interfered with the achievement of your financial goals;
- attention to spending on credit cards.
Through these good practices, you will not only have more control over your expenses, but you will have a quick solution to get out of this type of uncomfortable, inconvenient situation that can evolve into a serious problem.
So, if you want to show more people the most efficient solutions to learn what to do with an undue charge, take advantage and share this post on your social networks!